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Natural Resource Partners (NRP)
NYSE:NRP
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Natural Resource PRN
(NYSE:NRP)
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Rating:67Neutral
Price Target:
$114.00
▲(8.30% Upside)
NRP's overall score reflects strong financial performance and attractive valuation, tempered by technical indicators suggesting caution and market challenges highlighted in the earnings call. The company's ability to generate free cash flow and reduce debt are key strengths, but declining revenue and market headwinds pose risks.
Positive Factors
Debt Reduction
Reducing debt significantly enhances financial stability, providing more flexibility for strategic investments and shielding against market volatility.
Free Cash Flow Generation
Strong free cash flow generation indicates robust operational efficiency and the ability to fund growth initiatives or return capital to shareholders.
Leasing Activity for Lithium Production
Engaging in lithium production positions NRP to capitalize on the growing demand for battery materials, potentially diversifying revenue streams.
Negative Factors
Challenging Coal Market Conditions
Persistent challenges in coal markets could pressure revenue and profitability, necessitating strategic shifts or diversification to mitigate impact.
Soda Ash Market Downturn
An oversupplied soda ash market may continue to depress prices and margins, affecting NRP's earnings from this segment unless conditions improve.
Declining Revenue
Declining revenue growth suggests potential challenges in maintaining market share or pricing power, which could impact long-term financial performance.
Natural Resource PRN (NRP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.44B
Dividend Yield4.05%
Average Volume (3M)21.64K
Price to Earnings (P/E)10.0
Beta (1Y)0.57
Revenue Growth-14.79%
EPS Growth-17.10%
CountryUS
Employees56
SectorEnergy
Sector Strength52
IndustryCoal
Share Statistics
EPS (TTM)2.28
Shares Outstanding13,138,097
10 Day Avg. Volume18,932
30 Day Avg. Volume21,640
Financial Highlights & Ratios
PEG Ratio-0.27
Price to Book (P/B)2.66
Price to Sales (P/S)5.89
P/FCF Ratio5.80
Enterprise Value/Market Cap0.95
Enterprise Value/Revenue6.27
Enterprise Value/Gross Profit6.50
Enterprise Value/Ebitda7.88
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Natural Resource PRN Business Overview & Revenue Model
Company DescriptionNatural Resource PRN (NRP) is a consulting and public relations firm specializing in the natural resources sector, including mining, oil and gas, and renewable energy. The company provides strategic communication services, stakeholder engagement, and crisis management to help clients navigate the complex regulatory environment and public perception challenges in these industries. NRP focuses on enhancing the reputation of its clients while promoting sustainable practices in resource extraction and management.
How the Company Makes MoneyNRP generates revenue through several key streams: consulting fees for strategic communication services, retainers for ongoing public relations support, and project-based fees for crisis management and stakeholder engagement initiatives. The company may also earn income through partnerships with industry organizations and government agencies, providing expertise in regulatory compliance and community relations. Additionally, NRP could leverage its reputation to offer training workshops and seminars on best practices in public relations for companies in the natural resource sector, further diversifying its revenue sources.
Natural Resource PRN Earnings Call Summary
Earnings Call Date:Nov 04, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 24, 2026
Earnings Call Sentiment Neutral
The earnings call indicates a challenging environment with significant headwinds in coal and soda ash markets. Despite these challenges, NRP continues to generate substantial free cash flow and make progress in debt reduction. However, the lack of near-term catalysts for market improvement and continued downturns in key segments contribute to a cautious outlook.Q3-2025 Updates
Positive Updates
Substantial Free Cash Flow Generation
NRP generated $42 million of free cash flow in the third quarter of 2025 and $190 million of free cash flow over the last 12 months, despite significant headwinds in key commodities.
Debt Reduction Progress
NRP retired nearly $130 million of debt over the past 12 months, with only $70 million remaining as of the end of the quarter.
Unit Holder Distributions
NRP paid a $0.75 per common unit distribution for the second quarter and announced the same distribution for the third quarter of 2025.
Leasing Activity in the Smackover Formation
NRP is active in leasing acreage in the Smackover formation for lithium production, which shows potential for future revenue.
Negative Updates
Challenging Coal Market Conditions
Both metallurgical and thermal coal markets are struggling due to slowing global growth, soft steel demand, and muted thermal coal demand.
Soda Ash Market Downturn
The soda ash market remains oversupplied, with international prices below cash production costs, leading to a generational bear market.
No Distributions from Soda Ash Investment
NRP did not receive a distribution from Sisecam Wyoming in the third quarter and does not expect it to resume until the market improves.
CO2 Sequestration Lease Drops
Oxy and Exxon dropped their CO2 sequestration leases, leaving none of NRP's 3.5 million acres of CO2 sequestration pore space under lease.
Reduced Income from Mineral Rights and Soda Ash Segments
The Mineral Rights segment saw a $9 million decrease in operating and free cash flow, while the Soda Ash segment saw an $11 million decrease in net income compared to the prior year third quarter.
Company Guidance
During the third quarter of 2025, Natural Resource Partners L.P. (NRP) generated $42 million in free cash flow and $31 million in net income, despite facing significant challenges in the metallurgical coal, thermal coal, and soda ash markets. Over the past 12 months, NRP has generated $190 million in free cash flow and retired nearly $130 million of debt, with only $70 million remaining. The company's Mineral Rights segment contributed $41 million in net income and $45 million in free cash flow, although operating and free cash flow decreased by $9 million compared to the prior year due to weaker metallurgical coal markets. The soda ash segment saw a net income decrease of $11 million, driven by lower international sales prices and increased supply from China, with no distributions received from Sisecam Wyoming in the third quarter. Despite these market challenges, NRP plans to increase unitholder distributions by the third quarter of next year, contingent on maintaining a robust balance sheet.Natural Resource PRN Financial Statement Overview
Summary
NRP demonstrates strong profitability with high margins and return on equity. The company has improved financial stability by reducing leverage. However, declining revenue and free cash flow growth rates are concerns that need addressing to sustain financial health.Income Statement
NRP's income statement shows strong profitability with a high net profit margin of 54.26% for the TTM period. However, revenue growth has been negative, with a decline of 1.04% in the TTM period. The gross profit margin remains healthy at 72.57%, indicating efficient cost management. Despite the revenue decline, the company maintains solid EBIT and EBITDA margins, reflecting operational efficiency.Balance Sheet
The balance sheet reflects a strong equity position with a low debt-to-equity ratio of 0.023 in the TTM period, indicating low financial leverage. Return on equity is robust at 27.20%, showcasing effective use of equity to generate profits. The equity ratio is stable, suggesting a solid capital structure. However, past periods show high leverage, which could pose potential risks if not managed carefully.Cash Flow
NRP's cash flow statement indicates a decrease in free cash flow growth by 6.51% in the TTM period, which could be a concern. However, the operating cash flow to net income ratio is strong at 6.47, suggesting good cash generation relative to net income. The free cash flow to net income ratio remains at 1.0, indicating that the company is converting its net income into free cash flow efficiently.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 217.22M | 245.03M | 293.66M | 328.08M | 194.25M | 129.01M |
| Gross Profit | 209.56M | 245.03M | 261.34M | 305.57M | 175.17M | 119.81M |
| EBITDA | 172.93M | 214.73M | 311.03M | 317.29M | 166.85M | -34.65M |
| Net Income | 147.52M | 183.64M | 274.42M | 268.49M | 108.90M | -84.82M |
Balance Sheet | ||||||
| Total Assets | 753.55M | 772.91M | 797.88M | 877.13M | 953.82M | 921.88M |
| Cash, Cash Equivalents and Short-Term Investments | 31.02M | 30.44M | 11.99M | 39.09M | 135.52M | 99.79M |
| Total Debt | 69.38M | 142.07M | 159.36M | 171.78M | 433.55M | 471.50M |
| Total Liabilities | 142.30M | 221.80M | 219.64M | 235.09M | 513.89M | 549.02M |
| Stockholders Equity | 600.34M | 541.56M | 570.23M | 636.07M | 438.14M | 372.40M |
Cash Flow | ||||||
| Free Cash Flow | 187.32M | 248.49M | 310.97M | 266.72M | 121.80M | 89.27M |
| Operating Cash Flow | 187.32M | 248.49M | 310.98M | 266.84M | 121.80M | 89.27M |
| Investing Cash Flow | 4.75M | 7.51M | 5.42M | 2.69M | 2.41M | 1.68M |
| Financing Cash Flow | -191.95M | -237.55M | -343.50M | -365.95M | -88.49M | -89.43M |
Natural Resource PRN Technical Analysis
Positive
105.26
Price Trends
103.98
Positive
103.59
Positive
100.33
Positive
Market Momentum
1.13
Negative
72.90
Negative
81.81
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NRP, the sentiment is Positive. The current price of 105.26 is above the 20-day moving average (MA) of 104.22, above the 50-day MA of 103.98, and above the 200-day MA of 100.33, indicating a bullish trend. The MACD of 1.13 indicates Negative momentum. The RSI at 72.90 is Negative, neither overbought nor oversold. The STOCH value of 81.81 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NRP.
Natural Resource PRN Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $3.13B | 12.88 | 13.07% | 11.05% | -9.45% | -46.37% | |
67 Neutral | $1.44B | 10.02 | 26.19% | 4.05% | -14.79% | -17.10% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
64 Neutral | $5.10B | 145.23 | 1.67% | 0.36% | -23.25% | -90.78% | |
61 Neutral | $4.11B | -117.88 | -0.87% | 0.96% | -7.21% | -106.39% | |
54 Neutral | $3.12B | -68.96 | -2.87% | ― | -32.53% | -112.77% | |
54 Neutral | $1.27B | ― | -7.40% | 2.83% | -16.99% | -184.02% |
* Energy Sector Average
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.